PARSHVA ENTERPRISES 2022-23 Annual Report Analysis

Thu, 25 May

PARSHVA ENTERPRISES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PARSHVA ENTERPRISES Income Statement Analysis

• Operating income during the year rose 35.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.5% in FY23 as against 2.9% in FY22.
• Depreciation charges decreased by 25.0% and finance costs increased by 62.7% YoY, respectively.
• Other income declined by 95.7% YoY.
• Net profit for the year grew by 1.9% YoY.
• Net profit margins during the year declined from 1.6% in FY22 to 1.2% in FY23.

PARSHVA ENTERPRISES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	135	183	35.4%
Other income	Rs m	0	0	-95.7%
Total Revenues	Rs m	135	183	35.1%
Gross profit	Rs m	4	5	14.1%
Depreciation	Rs m	1	0	-25.0%
Interest	Rs m	1	1	62.7%
Profit before tax	Rs m	3	3	3.1%
Tax	Rs m	1	1	5.1%
Profit after tax	Rs m	2	2	1.9%
Gross profit margin	%	2.9	2.5
Effective tax rate	%	27.1	27.6
Net profit margin	%	1.6	1.2

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PARSHVA ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 11 million as compared to Rs 13 million in FY22, thereby witnessing an decrease of -14.6%.
• Current assets rose 1% and stood at Rs 114 million, while fixed assets fell 25% and stood at Rs 1 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 116 million as against Rs 116 million during FY22, thereby witnessing a growth of 0%.

PARSHVA ENTERPRISES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	103	105	2.1
Current Liabilities	Rs m	13	11	-14.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	116	116	0.2
Current assets	Rs m	113	114	0.7
Fixed Assets	Rs m	2	1	-25.2
Total Assets	Rs m	116	116	0.2

PARSHVA ENTERPRISES Cash Flow Statement Analysis

• PARSHVA ENTERPRISES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 0 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs -2 million net cash flows seen during FY22.

PARSHVA ENTERPRISES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-34	1	-
Cash Flow from Investing Activities	Rs m	4	0	-
Cash Flow from Financing Activities	Rs m	28	-1	-
Net Cash Flow	Rs m	-2	0	-

Current Valuations for PARSHVA ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an improvement from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 172.0, stands at 785.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.5 times, while the price to sales ratio stands at 9.4 times.
• The company's price to cash flow (P/CF) ratio stood at 934.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	13.4	18.2
TTM Earnings per share	Rs	0.2	0.2
Diluted earnings per share	Rs	0.2	0.2
Price to Cash Flow	x	403.9	934.4
TTM P/E ratio	x	526.4	785.7
Price / Book Value ratio	x	17.9	23.4
Market Cap	Rs m	1,844	2,453
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PARSHVA ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 10.3x during FY23, from 8.7x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 3.7x during FY23, from 5.3x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 2.0% during FY23, from 2.0% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 3.9% during FY23, from 3.5% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 2.8% during FY23, from 2.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	8.7	10.3
Debtors’ Days	Days	1,230	1,143
Interest coverage	x	5.3	3.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.4	2.8
Return on equity	%	2.0	2.0
Return on capital employed	%	3.5	3.9

To see how PARSHVA ENTERPRISES has performed over the last 5 years, please visit here.

PARSHVA ENTERPRISES Share Price Performance

Over the last one year, PARSHVA ENTERPRISES share price has moved up from Rs 0.0 to Rs 172.0, registering a gain of Rs 172.0 or around 0.0%.

Overall, the S&P BSE SENSEX is up 13.4% over the year.

(To know more, check out historical annual results for PARSHVA ENTERPRISES and quarterly results for PARSHVA ENTERPRISES)